Inclusion of the Informal Sector Pension: The New Pensions Act

Abstract

The study was conducted to examine the extent to which informal sector workers understand new pension scheme of Ghana, together with its benefits, challenges and adequacy in guaranteeing their retirement income security. Primary data through interviews and focus group discussions, and secondary data through review of relevant laws were obtained. A total of 86 participants constituted the sample, made up of the regulator, regulated and cross-section of informal sector workers. There is generally low patronage by the informal sector workers which can be attributed to lack of trust in the trustees. Awareness creation and public education are still being embarked upon to win public trust and confidence. The adequacy of the pensions scheme is attained through investments in permissible ventures such as treasury bills, real estate, bonds and stocks.